Senate Bill S4094

                                BILL NUMBER:S4094A

TITLE OF BILL:
An act
to amend the tax law, in relation to including the tuition of graduate
students within the college tuition credit

PURPOSE OR GENERAL IDEA OF BILL:
Tax tuition credit for graduate students.

SUMMARY OF SPECIFIC PROVISIONS:
Subparagraph (c) of paragraph two of subsection (t) of section 606 of
the tax law is amended to provide a tax credit for students enrolled
in a graduate program.

JUSTIFICATION:
Current law provides for a college tuition tax credit to students
enrolled or attending an institution of higher education, whether
full or part-time. An institution of higher education is defined in
the statute as any institution of higher education or business,
trade, technical, or other occupational school recognized and
approved by an accrediting agency. Tuition payments required for
enrollment or attendance in course of study leading to a
post-baccalaureate or other graduate degree are specifically exempted
from the tax credit.

              

The maximum amount of qualified tuition expenses allowed for each
eligible student is $10,000. If the total qualified tuition expenses
are more than $5,000, the credit for 2004 is four-percent of the
qualified tuition expenses up to $10,000 per student. Therefore, the
maximum tuition credit allowed for 2004 would be $400 per student. If
the total qualified tuition expenses are less than $5,000, the credit
is equal to the lesser of the total qualified college tuition
expenses or $200. The student is therefore not credited back the
entire amount of tuition but at most only $400 per student.

Logically, the college tuition tax credit should be extended to cover
qualified graduate tuition expenses as well. Total graduate
enrollment has generally increased in the past three decades. College
costs continue to rise, outpacing the rate of inflation. The
percentage of undergraduates who have borrowed and the average total
amount borrowed has consistently increased. Individuals often incur
enormous debt to earn a college education with no guarantee of job
placement. During slow economic times, businesses are not hiring and
college graduates unable to find jobs are choosing to attend graduate
school, thus, taking on additional debt burdens.

The graduate college tax credit will help those who need the tax
credit most.
New York State graduate students, who often have greater debt burdens
then
undergraduate students, will be able to obtain a graduate degree
without mortgaging their future. Those with graduate degrees
potentially will earn more money and collectively better this state
and country. Therefore, the college tuition tax credit should be
expanded to graduate college tuition.


PRIOR LEGISLATIVE HISTORY:
S.2435 of 2007/08
S.4094 of 2011/12

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
Immediately and shall apply to taxable years beginning on or after
January 1, 2013.